Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Utilities ETF (IDU) Hits New 52-Week High

Published 11/14/2017, 04:43 AM
Updated 07/09/2023, 06:31 AM

Investors seeking momentum may have iShares U.S. Utilities ETF IDU on radar now. The fund recently hit a new 52-week high. Shares of IDU are up approximately 23.3% from their 52-week low of $113.89/share.


But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.


IDU in Focus


IDU focuses on providing exposure to the utility sector of the U.S. equity market. The fund has a large-cap focus with key holdings in the Electric Utilities, Multi-Utilities and Gas Utilities sectors, with 58.2%, 30.3% and 5.5% allocation, respectively (as of Nov 10, 2017). IDU charges investors 44 basis points in fee per year. Its top holdings include Nextera Energy Inc, Duke Energy Corp (NYSE:DUK) and Dominion Energy Inc with almost 23% of the assets allocated to them (see all the Utilities/Infrastructure ETFs here).


Why the move?


The utilities sector has been performing well lately. The sector has been nearing an all-time high. Moreover, higher inflows in funds focused on providing exposure to the sector have provided a boost to this ETF. Strong earnings performance for companies in the sector has also led to the strong performance of the fund.


More Gains Ahead?


Currently, IDU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is difficult to get a handle on its future returns one way or another. The fund has a weighted alpha of 19.6. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.


Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>











ISHARS-US UTIL (IDU): ETF Research Reports

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.